Gaining momentum

S&P Global expects the global economy to expand 3.3% this year, marking a 20 basis points (bps) increase from its previous forecast. S&P Global raised its gross domestic product (GDP) growth forecast for China by 60 bps to 5.4%, the United States (US) by 10 bps to 2.4% and the United Kingdom (UK) by 20 bps to 0.5%. Meanwhile, it cut its forecast for Japan by 10 bps to 1.7% and kept the forecast for the euro zone unchanged at 0.6%.

The US Federal Reserve (Fed), Bank of England, European Central Bank (ECB) and Bank of Japan held interest rates steady at their latest policy meetings. These central banks, excluding Bank of Japan, have raised rates by 400-525 bps in the current cycle to curb high inflation. Inflation remains above targets but has eased from the highs of 2022.